New Russian law targets AllofMP3.com

Russia: it's the place to go for potato vodka, nesting dolls, and cheap online …

Like the rumors of Mark Twain's death, reports of AllofMP3.com's demise have been greatly exaggerated. A new Russian law that came into force this week could mark the end of the site's defiant run, though, as Russia attempts to enter the World Trade Organization and bring its intellectual property laws into agreement with international norms.

AllofMP3 has faced legal pressure for some time, but Russian authorities have never moved against the site. It operates using a loophole in Russian law that allows it to take out a "license" to distribute music, even if the group doing the licensing has no permission to do so from the artists involved. The Duma actually passed legislation in July of 2004 that gave works distributed on the Internet the same protections as those published in traditional formats, but the law did not take effect until September 1, 2006, according to Russian daily Kommersant. The delay was so that sites like AllofMP3 could have the time needed to come into compliance, but that would have required AllofMP3 to spend a significant chunk of change, so the site didn't bother.

The new law provides for up to five years in prison for copyright violators, but—this being Russia—few are convinced that the law will be enforced. Legal analyst Vadim Uskov says, "Russian laws might be good, but they are not implemented very well. If usual sellers of counterfeit goods are not caught on the street, then no one will catch the owners of websites in the Internet where it is hard to identify them."

Regardless of how well they will be enforced, the very fact that the legislation was passed is a victory for the International Federation of the Phonographic Industry, which has led the charge in Russia against AllofMP3. The group argues that the new law will spur the development of legal, fully licensed music sites that could not thrive in a market dominated by AllofMP3. The move no doubt pleased the Office of the US Trade Representative, which has told Russia that it needs to shutter AllofMP3 if it wants US support for its WTO bid. Russia currently remains on the 2006 Priority Watch List because of US concerns about "the continued increase in optical disc pirate production in Russian plants and the growth of Internet piracy on Russian websites such as www.allofmp3.com."

Duma trouble

Unfortunately for the copyright cops, all of this success could soon be undone by a pair of other developments. The first is Russia's recent claim that it is willing to pull out of WTO talks if no progress is made in agricultural trade talks with the US. How is this relevant? The biggest sticking point in the talks had previously been intellectual property laws, and now that new Russian laws are coming into force, Russia looked to have a clear path to the goal line. Now, with the other issues looming large in the accession talks, Russia is threatening to walk away from the table. If it does so, its committment to strengthening intellectual property laws would no doubt be weakened, and might make enforcement of the new legislation even less of a priority.

The second problem is that the Duma is set to consider a rewrite of Part IV of Russia's Civil Code, the section that deals with copyrights and intellectual property laws. This rewrite will supersede all previous laws, and in its current form seems to create more of the ambiguity that has allowed sites like AllofMP3 to stay alive in the first place. The US Trade Rep isn't happy about this and notes that the current draft of the legislation "raises questions about [Russia's] compliance with international norms and the possible adverse effect it could have, if passed, on IPR [Intellectual Property Rights] protection and enforcement in Russia."

So don't count AllofMP3 out just yet. The latest rumors of the site's impending closure might be just as vapid as the country's claim to have a functioning democracy.